Posts Tagged ‘risk of binary options’
Last decade witnessed significant changes in investment policies. Like an earthquake, recession changed the traditional economic concepts. People realized the importance of fast money multiplying medium parallel to a safe investment scheme. That is why binary option trading became the primary focus of the mid economic layer. Surveys show that an average binary option unit profit is higher than any other authorized investment schemes in the world. Though it works entirely in a logic manner, it may seem a new variant of gambling for new comers. However, before investing in binary option trading it is important to learn about the benefits of BOT.
The majority of the BOT investors are from the middle class members. Let us check the main benefits of binary option trading,
- Low investment options
- High profitability
- Selling, buying and holding options
- Availability of variants
Low investment options
There is no doubt that premium shares bring comparatively higher gains than mid cap shares. However, often most of the investors do not have such a great privilege to acquire them by investing huge money. Binary trade delivered an opportunity for smaller players to earn big. Even a person can start binary option trading by investing as small as $20. Most of the leading trading institutions provide a platform for binary trading without taking service charges. However, if the binary option value does not reach the touch value (expected mark), you may face a huge loss of your investment.
There are several binary option trading schemes where we can extract better gain than any other investment schemes. If the opted share manages to achieve the expected value hike before closing, the investor gains an amount up to 10 times the invested money. However, it is not wise to invest more than the Spending Threshold (ST). The term spending threshold refers to 75% of the total money you wish to invest at a particular time. Always save the balance in your wallet as in case of a loss; you may receive 25% of your investment. In fact, even at a loss you can save up to 50% investment in binary option trading.
Selling, buying and holding options
The best part of the binary option trading is its wide application through which an expert trader can fine-tune the character of trading in a manner that could maximize their profits or minimize the loss.
An investor can sell his binary option unit like a share unit. Mostly, the investors opt for selling in case if the corresponding share value of the binary option unit is showing a climbing tendency. This reduces the risk of the investor as at any case if the share value comes down all of a sudden towards the closing time, then the investor may likely lose a huge amount of money. During climbing tendency, a binary option trade unit may gain up to 2/5 value of the expected profit rate.
If you are confident about the tendency of a binary unit’s corresponding share value hike, always grab one at maximum price, that is no more than 2/5 of the expected profit value. Always understand about the market tendency before investing in any binary trading schemes.
There is no doubt that holding a BOT is the best way to multiply the investment in a few hours. However, it is important to sense the market changes as even a minor fluctuation can alter the hike of premium shares, commodities, and Forex.
However, it is important to analyze the share market before investing. Do not hesitate to sell your holding BOTs if the corresponding share tends to show negative growth.
Availability of variants
It is estimated that there are more than 20 real categories of binary trading option and more than hundreds of subcategories. Share binary trading option is the most preferred investment media according to the recent economical developments. The main three categories of binary option trading are,
- Share trading
- Commodity trading
- Forex trading (foreign exchange)
Several national governments have developed and implemented binary option trading regulations that will reduce scams and cheats. In some countries, the national governments have reduced the tax of stock values considerably in order to attract the foreign investments.